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Global supply chain procurement platform for regional economic stimulation

The idea

Idea title: Global supply chain procurement platform for regional economic stimulation

One Sentence description: Sustainable Housing Sourcing model For Indigenous Communities

Addressing topic: Social Procurement Challenge

Team members: Ryan Mullaney (LPCT), Tillmann Boehme (UOW), Jason Elsegood (CCC), Heather Hausfeld (SMEC)

Provide an overview of your solution and how it solves the problem along with a short description of your inspiration behind the idea:

By 2030 UN-Habitat estimates that 3 billion people will be in need of new housing and basic infrastructure (The World Bank, 2017). This global housing shortage can be felt locally within the Indigenous communities, where 2,087 homes are currently needed in the Northern Territory to significantly reduce overcrowding and replace structurally unsound dwellings (Bardon, 2016)

The humanitarian supply chain platform currently being developed between Lifting Point Construction Technologies (LPCT) and the University of Wollongong (UOW) provides a vehicle to reduce the housing and infrastructure shortage by upskilling local communities, & stimulating economic growth. This platform will enable the decentralised construction of essential community infrastructure, by providing detailed design and fabrication information including designs, cost transparency, production & installation time-lines, etc.

To test this innovative sourcing system, LPCT has developed a pre-fabricated housing system for ease of manufacture, logistics and installation in emerging economies, where a large portion of the available workforce is low skilled. LPCT’s technologies are based around establishing local capabilities and capacities to deliver community infrastructure. We believe that a “local only” approach will benefit communities by utilising local manufacturing and construction labour, in turn developing new skills, and providing job opportunities, stimulating economic growth. Therefore, sustainable and long term investment will benefit the local economies and people within these communities.

With the evolution of technology, globalization has primarily benefited Western countries which have the financial ability to develop management systems to capitalise on global marketplace opportunities. By harnessing the technological capabilities available, emerging economies can help their local organisations access finance for large projects, in turn supporting growth in communities which would otherwise rely on infrastructure built by tender winning and expensive FIFO contractors.

Describe your solution in detail, providing a high-level business plan addressing how you would implement your solution:

  • There are 3 main elements to the local sourcing social procurement model.
  1. Information system definition.
  2. Development of product design variations (mass customisation through standardisation)
  3. Pilot implementation study: Northern Territory commercialisation collaboration with the Indigenous Business Network

 

  1. Information system definition

The overall concept of the information system is currently being developed by researchers from the University of Wollongong. Specifically, UOW is creating a value stream design for commercial acceleration, with the working project title, Humanitarian Supply Chain for Shelter Homes (“HSCSH”). This project will take place over 6 months, and is intended to be fully completed by 15/04/2018. The project is staged as follows:

  • Stage 1: Strategic Direction
  • Stage 2: Market Entry Barriers and Enablers, Value Stream Design, Process Design, and Product Design Principal (reviewed).
  • Stage 3: IT requirements to enable value stream design;
  • Stage 4: Presentation of Findings; and
  • Stage 5: Professional Documentation.

The collaboration aims to produce the following key deliverables:

  • documented overarching strategic direction
  • clear target market understanding
  • competitor analysis (including cost comparison)
  • clear idea on distinctive value proposition
  • clear understanding of customer - documented
  • tailored value stream solution to meet customer requirements
  • scenario planning for distinct market entry barriers
  • identification of product improvement opportunities
  • documented IT requirements
  • verification of findings and iteration
  • full polished report for fund raising

Once completed, the findings from this project will help define the framework for the humanitarian supply chain software platform, as well as market entry strategies.

  1. Product design variations (mass customisation through standardisation)

The supply chain platform will be developed using LPCT’s housing system as a test product, to ensure compatibility with a product with variable component requirements. The ‘BuiltQuik’ Central-Frame House product has been developed to be easily assembled in remote locations by members of the local community. Snowy Mountains Engineering Company (SMEC) will certify designs managed by LPCT and Cross-Cultural Consultants (CCC - see below) to demonstrate the various applications of the structural shells for Aboriginal housing in the Northern regions of Australia.

  • Temporary Dwellings

Meetings with local organisations highlighted the immediate need for 3-bedroom transitional homes to take pressure off overcrowding in remote communities.  There are no viable alternatives for inclusive, spacious, self-contained and easily installed home solutions, and so community members are left without housing infrastructure while their new homes are being built.

Developing a relatively cheap, simple and spacious housing package that can be erected in 1-2 days with low skills, will provide a viable short-term (1-3 months) option to alleviate remote community overcrowding while permanent solutions are being built.

  • Permanent homes

The system can also be used to construct permanent structures. Developing a long-term, sustainable supply chain managed and operated by indigenous communities will provide job opportunities and local economic stimulation, whilst giving ownership of the design and construction of houses back to the people who will live in the homes.

  • Northern Territory Medical Clinics

The versatility of the system for medical facilities may also be demonstrated through its use in potentially building remote and regional renal clinics across the NT.

  1. NT commercialisation collaboration with local Indigenous Business Network

Current NT indigenous housing initiatives: Room to Breathe, Renovations, and the NT Department of Infrastructure, Planning and Logistics has budgeted $1.1billion over 10 years. The NTIBN has a range of Indigenous businesses both urban and remote that could be utilised for local supply and to partner with small Aboriginal organisations in the bush to build business capacity.

Cross Cultural Consultants Cross Cultural Consultants is a communication interface with Aboriginal communities and will provide the conduit to ensure local narratives are heard, considered and local decision making is front and centre of all development. In recent discussions, CCC have stated that there is a focus on improving renal heath facilities in the bush and that there is many discussions going on where co contribution funding could be sought. CCC believes building temporary and permanent dwellings as examples in the Alice Springs, Katherine and Darwin communities would be a good way to create training and employment outcomes for Aboriginal people while potentially creating a regional supply and manufacturing point in the main NT hubs. Remote community people could work and be trained in these hubs and then be the key part of the place based delivery process in their own remote community. By having local community groups at the forefront of the developments it will ensure overall community input and participation. The benefits of designing, building and installing their own homes will ensure we are able to obtain an accurate understanding of the project’s cost benefits, and more clearly demonstrate the potential economic benefit to State and Federal Governments for the necessary reform to enable this methodology to be used in the most effective way.

Outline the budget required to achieve the ambition of your idea:

$30,000 - Sourcing & procurement research project for development investment

$50, 000 - Locally fabricated and supplied structural shell for Proof of Concept (Renal Clinic or Temporary Home)

$120,000 - Clinic or Home Fit-out  ( Partner Co-Contributed Funds) 

 

 

Partnerships are critical for a stronger idea and delivering a solution. Who are the key stakeholders within your idea? Is your solution the result of a collaborative approach? If not, are you looking to bring other partners along:

University Of Wollongong

UOW are leading the research project, forming smart strategies to ensuring the systems development of a "Global Supply Chain Procurement platform for Regional Economic Stimulation. 

Cross Cultural Consultants 

Cross Cultural Consultants is a communication interface with Aboriginal communities and will provide the conduit to ensure local narratives are heard, considered and local decision making is front and centre of all development.

Snowy Mountains Engineering Corp. 

SMEC are engineering and certifying designs to ensure their suitability for the NT, and tropical climates.

 

To strengthen the likelihood of success, a broad foundation of evidence is critical. What’s the evidence base that points towards your solution being a success? Is your solution addressing an unmet gap in the market:

From our discussions with relevant funding bodies and local organisations, as well as presentations in webinars and seminars, the growth of emerging economies is often restricted by the fact that in order to ensure quality delivery, projects are often awarded to large foreign contractors, which funnels the funds out of the local economy. Furthermore, the opportunity to expand local supply chain and manufacturing capabilities is significantly reduced or lost.

To date, NT Aboriginal communities have been given one-size-fits-all solutions which have created many issues, leading to social and community unrest. Tenants have had minimal input in the design, production or installation of their housing and community infrastructure. Limited local labour is used and hence, the cost of infrastructure to the government is astronomical compared to the cost of delivered projects in established communities.

Who are the key beneficiaries of your solution:

The key beneficiaries of regionally establishing scale production capacities are local supply chain organisations, which would benefit from increased growth, and regional community members who would experience increased employment opportunities in the supply chain.

By also allowing the communities to design their own home, and be involved in production and installation, they should have a strong sense of ownership in creating the homes they live in.

Do you have funding partners interested in your idea:

The ideology for the sourcing platform was formed from meetings with IFC (International Finance Corporation) for the regional manufacturing of road and housing infrastructure.  When the systems capabilities and development budget has been refined with UOW, LPCT plan to take the info system for investment, to IFC, The WB (World Bank), & ADB (Asian Development Bank) to help capture global production data, to be able to disseminate their investment into growing local capacities in global regions. 

Describe your most successful experience executing a solution to a problem:

Our Northern Territory Partner, CCC, are interested in a commercialisation advocacy role for the Northern Regions of Australia. They require product demonstrations and are keen to help us build accurate cost and employment models. CCC voiced that they would then engage either Deloitte or KPMG to run advanced analyses on the social and economic benefits of the product. The sourcing model for the IP of the system will provide the indigenous people many benefits compared to traditional remote builds through tender contractors.

The Department of Housing and Community Development is very interested, and they are waiting for notification of our prototype demonstration location and time frame. Past housing development projects have been extremely expensive, with a primary focus on the longevity of the housing structures, creating undesirable dwellings not suited to the climate or local culture. Many homes are damaged or destroyed due to the social effects caused by the lack of cultural sensitivity and unemployment problems present in remote communities.

Many supply chain stakeholders have noted that our model could completely change the way aboriginal housing infrastructure is delivered, how the delivery is approached, and how initiatives are invested in. It has been recognised that a long-term collaborative approach between all the stakeholders is the only ultimately effective way to strategize and deliver real social and economic benefits in these communities.

Optional visual/picture/infographic that demonstrates your idea:

Solving the Aboriginal Housing Crisis – Mass Customisation of Aboriginal Housing Solutions: A local indigenous economic growth model 

A few buzzwords to consider:

  • Social procurement model taking advantage of the Internet of Things (enabled through BIM)
  • Give a starving person a fish so he can eat; teach him how to fish...  Economic growth model
  • Core to the collaborative procurement model is aboriginal community choice paired with a strong partnership with CCC
  • LPCT role is platform development – model checker – supply chain up-skilling and implementation 
  • Blue elements are context specific
  • Main Contractor would need to be identified from region to region
  • Design interface – BIM platform – Simplicity
  • Business Model for LPCT – licensing of IP 

 

Idea Opened: 01:40 PM, Friday 03 November 2017
Idea Closes: 06:00 PM, Friday 03 November 2017
Time to go: Closed

 

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The context

Idea Opened: 01:11 PM, Friday 03 November 2017
Idea Closes: 06:11 PM, Friday 03 November 2017
Time to go: Closed

Do you want to contribute to this idea?

Idea Activity

Idea Activity

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Dr. Jodie Goldney is now contributing to this idea Global supply chain procurement platform for regional economic stimulation

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Dr. Jodie Goldney commented on the idea Global supply chain procurement platform for regional economic stimulation

Hi all, just wanted to say congratulations on getting into the next round.  I tried to facebook you, but couldn't find your details.  Good luck with getting the video together.  It is a very exciting time.  Cheers.  Jodie

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Dr Tillmann Boehme is now contributing to this idea Global supply chain procurement platform for regional economic stimulation

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Matt Perfect is now contributing to this idea Global supply chain procurement platform for regional economic stimulation

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Matt Perfect commented on the idea Global supply chain procurement platform for regional economic stimulation

Thanks Ryan, Tillmann, Jason and Heather. This sounds like an interesting idea which will enable local procurement, an important aspect of 'Good Procurement'. Local government and resource companies have long understood the value of local economic development and I encourage any business looking to generate more social impact through their supply chain, to start by understanding which of their suppliers work and live in their local communities. Good luck!

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Jason Elsegood is now contributing to this idea Global supply chain procurement platform for regional economic stimulation

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Ryan Mullaney is now contributing to this idea Global supply chain procurement platform for regional economic stimulation

Meet the team

Ryan Mullaney Director, Development & Strategy
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Contributors

Dr Tillmann Boehme Senior Lecture
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Jason Elsegood Director | Cross Cultural Consultants
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Ryan Mullaney Director, Development & Strategy
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Matt Perfect Founder and Impact Spender
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Dr. Jodie Goldney Founding Director
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